All the smart money is in off shore banks,Do you mean the small operations, like 'Sir' Alan Stanford's; the Icelandic banks, like Glitnir, Kaupthing and Landsbanki; are you saying that the British will provide better deposit insurnance for HSBC, LLoyds, or RBS?; or are you talking about the big guys, like Deutsche and UBS?
I am talking about private investors , who nonw have their money off shore. Its spread throughout the Carribean, France, Spain and Canada. These natons have solid, solvent banking systems which have access to gold based financial shelters and investment management. That money has not re-entered the US stock markets , and likely will not until there is some fiscal management policies which make free market sense.THe fed's comittmentto by 300 billion dollars in Trasurie Bills put a long term seal on that money staying out. It will be invested in commodity based operations around the world in the interim, but will avoid the US financial system and its long term bear markets. The USD will now devalue, and it may no longer may be the worlds shelter currency. There will be no shelter currency. That is why commodities which represent genuine value will be in high demand internatonally. And the USA has little of that sector compared to other nations. And the USA is a dangerous place for the movement of money, for many our banks are marginally solvent, or are actually insolvent.And the FDIC is broke. Anyone with a few million dollars to invest will avoid that like the plague. This is the real problem that the current Geither/Bernake plan does not address, nor will they.Those folks are defined as " the investor class" and Obama meant to destroy them.
But in fact, the investor class has outsmarted Obama.And they have broken no laws in doing so.They pay their taxes. No way he can even get at them. This is one reason the IRS has pursued numbered Swiss Bank accounts so vociferously , of late. Its almost impossibly expensive to audit them, and thats a good thing.
Its really quite laughable.
America cannot be "America" without its so called investor class. In due time Obama will come to realize this fact.He needs their tax revenue right here at home.Until they return, there will only be a very sluggish , meandering recovery.They represent about 40% of all market capital that has now exited and that is the reason the Dow is 40% down from its former highs in 2006.People just folded their capital tents and left for much greener pastures.